This was what the ‘White Paper’ on outstanding debt and debt servicing liabilities of the state as on 31st March 2007, released during the Independence Day by the government, had to say:
- Central Government debt = Rs. 463.62 Crores
- Internal debt including market borrowings and small savings loan from National Small Savings Fund = Rs. 1340.86 Crores
- General Provident Fund and Employees’ Group Insurance Fund = Rs. 531.92 Crores
Total outstanding debt and debt servicing liabilities = Rs. 2336.40 Crores
Phew, isn’t that huge chunk of money! With no clear revenue source in sight, how the government envisage to clear the debt? And without any significant development at sight, I wonder where has the central assistance of Rs. 4172.58 Crores (i.e., 90% grant component to the state, if Rs. 463.62 crores is the 10% loan component) been utilized? Now I guess I know where all the Central Assistance in the form of 90% grant goes. Debt servicing, of course!